What: Shares of Proofpoint Inc (NASDAQ:PFPT) were soaring today, closing up 10.5%, as the tech security-and-compliance provider posted its first-ever quarterly profit, roaring past estimates.
So what: Proofpoint delivered 41% revenue growth, to $89.9 million in the quarter, beating expectations, while its per-share profit of $0.06 was much better than estimates of a $0.07 loss per share. CEO Gary Steele said the company's strong quarter was due to "broad-based demand across all of our cloud-based solutions," adding that the company delivered high competitive win rates as the company's results exceeded its own expectations.
The company's accomplishments in the quarter included expanding its partner ecosystem with Splunk, Cyberark Software, and Imperva, and expanding its partnership with Linkedin.
Now what: Looking ahead, Proofpoint projected an adjusted EPS profit for the full year, at $0.06-$0.10, much better than the analyst consensus of a $0.13 loss, and its full-year guidance of $361.5-$363.5 million was also ahead of expectations, at $352.8 million.
Proofpoint continues to take business from competitors, including Cisco Systems, as a recent Piper Jaffray survey found, and it should benefit from the secular growth in cybersecurity, as well as increased market share, as cloud adoption accelerates. Valuation is still a concern; but if the company continues delivering quarters like this one, the stock will surely move higher.